Problem : Waiting For Your SR&ED Refundable Tax Credit Cheque
Solution : Finance Your Shred !
OVERVIEW – Information on the benefits, and mechanics of financing r and d tax credits in Canada Monetizing the R&E Sred research tax credit completes the final stage of SHRED claims – Receiving the cash flow benefit
R and D tax credits in Canada often have business owners and financial managers feeling they are on a much longer journey than perhaps it really is. For the SRED research tax credit the end of the road is of course receiving your cheque. That combo of real/imaginary waiting can be significantly shortened by financing your SR&ED claims. Let's dig in.
SR&ED (Scientific Research & Experimental Development) credits require your claim to be accepted and adjudicated by CRA. While some view the mechanics of the claim as a form of paper ' torture ' probably closer to the truth is that thousands of claims by firms ( including your competitors ) are approved annually and Billions is refunded in the form of .. you guessed it.. real money!
We don't have the figures on firms which file every year as a part of their ongoing processes for improvement in their products but those firms that do have clearly mastered the process. SHRED claims are all about your firm investing funds in solving real and practical problems. In many case your might also contract out to other Canadian businesses a part of that R&D, and those expenses are of course also eligible under the program.
Up until you choose to finance your claim they are a couple of ' key players ' in your research tax credit process. That includes your SR&ED consultant and your accountant, who prepare and file your claim respectively. While we might consider filing the claim with your annual financial return as fairly straight forward the preparation of the claim by your Sred consultant is key to both maximizing and legitimizing your refund .
The actual financing of your claim is a very straight forward process - it's all about receiving, in the form of a bridge loan, 70% of the total amount of your combined federal/provincial refund. By the way, many claimants have already promised a portion of their claim to their SR ED consultant, as the majority of these firms work on a contingency basis -taking on the full risk and cost of preparing a claim.
It goes without saying that ' big is better ' in Sred claims, but almost all claims are financeable if they make economic sense to both the borrower and the lender in terms of cost.
The wide variety of firms that both prepare and choose to finance claims is very varied. While software firms seem like they might dominate the industry the reality is that every industry in Canada is in fact eligible to both submit, and if they choose... finance a claim.
Financing a SR&ED research tax credit can be achieve in a matter of weeks, and funds your company receives can be used for any general corporate purpose, including of course .. more R&D. The additional attraction of a SR ED loan is that there are no payments during the duration of the loan – it has a balloon payment structure coinciding with the receipt of your refund.
Financing the SRED research tax credit eliminates waiting for refund. Seek out and speak to a trusted, credible and experienced Canadian business Financing Advisor with a track record of success who can facilitate accessing the ‘real money ‘in your SR&ED refund.
7 Park Avenue Financial :
http://www.7parkavenuefinancial.com
Business financing for Canadian Firms , specializing in working capital, cash flow, asset based financing , Equipment Leasing , franchise finance and Cdn. Tax Credit Finance . Founded 2004 - Completed in excess of 100 Million $ of financing for Canadian corporations . Info /Contact :
7 PARK AVENUE FINANCIAL = CANADIAN SR&ED TAX CREDIT BRIDGE LOANS
7 Park Avenue Financial
2910 South Sheridan Way
Suite 301
Oakville, Ontario
L6J 7J8
Direct Line = 416 319 5769
Office = 905 829 2653
Email = sprokop@7parkavenuefinancial.com
' Canadian Business Financing With The Intelligent Use Of Experience '
ABOUT THE AUTHOR
Stan has had a successful career with some of the world’s largest and most successful corporations.
Prior to founding 7 Park Avenue Financial in 2004 his employers over the last 25 years were, ASHLAND OIL, ( 1977-1980) DIGITAL EQUIPMENT CORPORATION, ( 1980-1990) ) CABLE & WIRELESS PLC,( 1991 -1993) ) AND HEWLETT PACKARD ( 1994-2004 ) He is an expert in Canadian Business Financing.
Stan has over 40 years of business and finance executive experience. He has been recognized as a credit/financial executive for three of the largest technology companies in the world; Hewlett-Packard, Digital Equipment and Cable & Wireless. Stan has had in depth, hands on experience in assessing and evaluating thousands of companies that are seeking financing and expansion. He has been instrumental in helping many companies progress through every phase of financing, mergers & acquisitions, sales and marketing and human resources. Stan has worked with startups and public corporations and has many times established the financial wherewithal of organizations before approving millions of dollars of financing facilities and instruments on behalf of his employers.
Stan Prokop
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